The following is a visual representation of the Closing “Financing” process when buying homes as a Nomad. It is part of the Closing process that you'd use for closing on a property.
Closing: Closing “Financing”
Let's look at each step in more detail.
- 2 forms of photo ID
- Your checkbook - sometimes there will be a last minute adjustment to the closing numbers resulting in a small shortage that the Title Insurance Company will accept a personal check for
- Your funds required for Closing (usually a certified check)
Be sure to bring certified funds, two forms of ID and your checkbook.
Mark this task complete after Closing.
Reviewing Documents Ahead of Time
Some buyers prefer to read and review all their closing documents in detail. Since closers for title companies often book their closings about an hour apart, sometimes it helps for buyers to get copies of all their closing documents ahead of time so they can read them at their leisure in the week or so prior to closing. Then, at closing they're just verifying the documents are the same ones they've already read and signing them.
If you'd like to read all your closing documents, ask your real estate agent and/or closer from the title company for copies to read ahead of time.
“Financing” Closing Documents
The following are likely documents you'll see and/or need to sign at closing to close the financing portion of your closing if you're using a loan to purchase the property.
- Deed of Trust
- Promissory Note
- Planned Unit Development Rider
- Balloon Rider
- 1-4 Family Rider
- Adjustable Rate Rider
Lender Attending Closing
It is my opinion that your lender should attend closing with you. Many lenders don't.
Lender Fails to Fund Loan for Closing
What happens if your lender fails to fund the loan for closing? The contract to buy and sell real estate is an agreement between buyer and seller and if the lender you selected as the buyer fails to fund the loan at closing, you as the buyer are in default. While it is unlikely, it could mean that the seller is not required to sell you the property and can keep your Earnest Money.
So, it is especially important to use a lender that has a history of performing and will show up for closing and fund the loan on-time and as agreed.
Next: Immediately After
See the Immediately After process next.
IMPORTANT NOTE: This checklist is based on what I personally use with clients in Northern Colorado and is based on the Colorado Real Estate Commission approved Contract to Buy and Sell Real Estate. Please rely on your local real estate agent for how it works in your local real estate market. This process will definitely vary in different States.